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• New York takes aim, again, at tax-free reservation tobacco sales 

The state will try a new tactic in an effort to collect taxes on sales of tax-free cigarettes sold by Indian retailers.

Negotiators said Friday a legislative deal that will be ready for passage Monday in the Senate and Assembly would make it illegal for a tobacco manufacturer to sell cigarettes to any wholesaler who has failed to agree to stop selling tax-free cigarettes to Indian retailers, such as those on Seneca Nation reservations.

The question is, if the measure is approved and signed by Gov. David A. Paterson, will it be enforced? Or, like another similar law approved several years ago, will the administration ignore collection of the tax?

Supporters believe the law could result in the state reaping more than $400 million in cigarette excise taxes currently lost to tax-free sales.

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